QAD Inc. (QADB) Reports Q3 Revenues Miss; Offers FY19 Revenue Guidance Below Consensus

QAD Inc. (NASDAQ: QADB) reported Q3 EPS of $0.14, versus $0.00 reported last year. Revenue for the quarter came in at $79.6 million versus the consensus estimate of $81.12 million.

• Subscription revenue of $23.9 million, compared with $17.2 million. Currency had a $252,000 negative impact.
• Subscription gross margin of 64 percent, versus 56 percent.
• License revenue of $4.6 million, compared with $6.6 million. The currency impact was not meaningful.
• Professional services revenue remained constant at $20.7 million. Currency had a $492,000 negative impact.
• Maintenance and other revenue of $30.4 million, compared with $32.4 million. Currency had a $550,000 negative impact.
• GAAP pre-tax income of $3.6 million, versus $1.1 million. GAAP pre-tax income was higher than the company\'s prior guidance as a result of improved subscription margins and lower personnel expenses.
• Non-GAAP pre-tax income of $5.7 million, compared with $3.5 million.
• GAAP net income of $3 million, or $0.14 per diluted Class A share and $0.12 per diluted Class B share, versus a GAAP net loss of $161,000, or $(0.01) per Class A share and $(0.01) per Class B share.

"Our subscription business continued its revenue and margin growth as increasing numbers of global manufacturers embraced the cloud," said Pam Lopker, President of QAD. "With QAD's new Channel Islands offering now generally available in the cloud, the competitiveness of our product portfolio uniquely positions us for long term cloud revenue growth."

GUIDANCE:

QAD Inc. sees FY2019 revenue of $332 million, versus the consensus of $334.32 million.

For earnings history and earnings-related data on QAD Inc. (QADB) click here.

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